Certainty around a number of key market events is increasing as investors look to year end. Stronger industrial data in the US reinforces a December rate rise. Weak but not too weak inflation data in Australia suggests a steady interest rate environment. And the first major bank annual report this morning points to maintenance of higher dividend pay out ratios.
Both US manufacturing and services PMIs released this week are above forecasts, and firmly in expansionary territory. Under these conditions the US Federal Reserve is almost certain to lift rates in December. Market reaction may be muted due to the strong signalling from the Fed.
The National Australia Bank reported a 95% drop in net profit after write downs related to the sale of its UK businesses. However, underlying cash earnings rose 4%, and the NAB dividend matches previous. These factors could see investors supporting the share price today, despite the poor headline.
Energy stocks are in focus after oil prices slumped. The falls came despite a draw on US inventories, suggesting underlying weakness. This may see local energy stocks swing lower.
CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.